Abstract
The purpose of this paper is to analyze the development of Mitsui Zaibatsu's affiliated companies in the coal-mining industry in Hokkaido after World War I, and intercompany relations between the direct-line companies, Mitsui Bussan Kaisha and Mitsui Mining Company, and the collateral-line company, Hokkaido Coal & Steamship Company (HCSC).
In the 1910s, Mitsui Zaibatsu entered the Hokkaido coal-mining industry since it controlled HCSC. In order to sell coal, these three companies (HCSC, Mitsui Bussan Kaisha, and Mitsui Mining Company) established a common sales organization named Sansha Baitanbu. At first, HCSC could not sell and transport the coal by itself, and Mitsui Bussan interfered in these duties because direct-line companies were concerned that HCSC would withdraw from Mitsui Zaibatsu. In the latter half of the 1910s, however, Mitsui Mining increased holding stocks in HCSC, and direct-line companies sent staff to the executive board and middle management of HCSC, thus giving Mitsui Zaibatsu stronger control over HCSC than before. Consequently, the concerns about HCSC decreased, and at the same time HCSC was able to carry out its duties autonomously.
In the 1920s, when Sekitan Kogyo Rengokai tried to control the shipment of the coal, both HCSC and Mitsui Mining increased their market shares. Mitsui Mining increased its production because it actively invested its capital and often exceeded the quantity stipulated by Sekitan Kogyo Rengokai. On the other hand, HCSC almost always kept within the stipulated quantity, and Mitsui Zaibatsu regulated its capital investment. Its gradual growth of production controlled the shipment of the coal in Hokkaido and had supported the growth of Mitsui Mining in Hokkaido.
Thus, HCSC was located within Mitsui Zaibatsu in the 1920s, though some restrictions still remained, and the relationship between HCSC and Mitsui Mining became more meaningful.
